Why should you invest in programmatic advertising?

Nowadays, with the rapid growth of technology and content on social media, it is crucial to know when to invest in your brand and, perhaps even more importantly, where to invest. Programmatic advertising emerges as an innovative solution to promote your brand, business, services, or any other objective, allowing you to send messages directly to the audience you want to reach, using automated technology and algorithms.

These efforts become increasingly precise as you invest in the right place, for the right audience, and with the right resources. However, for everything to work efficiently, it is essential to understand how programmatic advertising operates and why it is a valuable strategy for your business.

When, where, and to whom

First and foremost, it is important to highlight that programmatic advertising offers complete control over where your ads will be displayed, when, and to whom. As it is a fully automated technology, from the moment you decide to invest in programmatic advertising, certain steps are mandatory, but the process is simplified and highly efficient.

This automation allows you to direct your ads to the ideal target audience, at the right time, and through the most relevant channels, maximising the impact of your message.

Programmatic advertising in practice: DSP and SSP

For programmatic advertising to work efficiently, it is essential to understand the role of demand-side platforms (DSP) and supply-side platforms (SSP). Both technologies work together to facilitate the buying and selling of media, ensuring the process is agile and effective.

DSP (Demand-Side Platform)

The DSP (Demand-Side Platform) is the tool that allows agencies to determine which impressions to buy and at what price, always with a focus on awareness. One of the most important metrics to monitor is CPM (Cost per Thousand), which refers to the cost per 1,000 impressions. It’s worth noting that an impression occurs when someone views the ad.

The DSP uses advanced algorithms to analyse real-time data, such as user behaviour, interests, and browsing history, to ensure your ads are displayed to the most relevant audience. This increases the chances of engagement and conversion.

SSP (Supply-Side Platform)

On the other side, we have the SSP (Supply-Side Platform), responsible for selling advertising space in an automated way. This platform increases the efficiency of the process by combining available inventory with an automated virtual auction, ensuring spaces are used optimally.

The SSP is crucial for publishers (websites, blogs, news portals) to make their advertising spaces available efficiently, connecting directly with the demands of DSPs. This creates a dynamic ecosystem where media buying and selling happen in milliseconds.

Control over spending

One of the great benefits of programmatic advertising is control over spending. You set the budget, and there are no surprises. By configuring a platform with spending limits, it manages everything to find the best price suitable for your business, targeting the right audience.

This eliminates the need for manual media buying, saving time and reducing costs. Additionally, programmatic advertising allows real-time adjustments, ensuring you don’t spend more than planned.

A variety of ad formats

Programmatic advertising offers a variety of ad formats, including:

• CTV (Connected TV): Ads on internet-connected televisions, ideal for reaching audiences who consume streaming content.
• Display: Banner and graphic ads on websites and apps.
• Video: Video ads that can be displayed before, during, or after the main content.
• Audio: Ads on audio streaming platforms, such as podcasts and music services.

Spotlight on native advertising

Native advertising is a type of ad that seamlessly integrates with the original content of the website or platform where it is displayed. Unlike traditional formats, such as banners or pop-ups, which can feel intrusive, native ads are designed to visually and contextually blend into the environment where they are placed. This means they do not interrupt the user experience but rather complement the content the user is already consuming. It is important to choose the platforms where your ads will appear and ensure your audience is prepared to receive the message and gain knowledge about your product or service.

Choosing the right audience

Before thinking about conversions and interactions with ads, it’s crucial to focus on reaching an audience likely to respond positively to your business. Even if this audience doesn’t show immediate interest in actions like visiting your website, accessing the app, or making a purchase, it’s important to keep them engaged.

The first stage of prospecting aims to reach as many people as possible, even if not all of them convert. This is a visibility phase, and the actions taken in the next stages of the sales funnel will make a difference in engagement and conversion.

Monitoring campaign performance

As your campaign progresses, it’s essential to monitor and improve its performance. After the learning period, you’ll have access to real-time insights, another advantage of programmatic advertising. These insights allow you to identify what’s working well and what needs adjustments, avoiding unnecessary spending and providing valuable information to optimise campaign stages.

Combating fraud

In addition to all these benefits, advertising fraud policies make campaigns safer and enhance the platform’s prestige. By setting the budget, publishers, assets, and other details, the machine learning process analyses potential fraudulent patterns, ensuring the integrity and effectiveness of your campaign.